Exhibit 99.1
AptarGroup Reports Record First Quarter Revenue; Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 20, 2006--AptarGroup,
Inc. (NYSE:ATR) today reported record first quarter revenue. The
Company also reported an 8% reduction in diluted earnings per share
from the prior year's level due to the expensing of stock options in
accordance with recent accounting regulations.
FIRST QUARTER RESULTS
For the quarter ended March 31, 2006, sales increased 9% to a
record $375.5 million from $344.0 million in the prior year. Sales
growth was favorably impacted by acquisitions which added $25.6
million, or 7%, to AptarGroup's revenue and negatively impacted by
changes in exchange rates which reduced revenues by approximately 5%.
Net income in the quarter, including the effects of expensing stock
options, was $19.8 million compared to $22.1 million a year ago.
Diluted earnings per share were $.55 per share compared to $.60 per
share in the prior year. Acquisitions contributed approximately $.02
per diluted share to earnings, while stock option expenses reduced
earnings by approximately $.13 per diluted share.
MANAGEMENT COMMENT
Commenting on the quarter, Carl A. Siebel, President and Chief
Executive Officer, said, "We recorded strong top line growth over the
prior year primarily due to increased demand for our dispensing
closures and pharmaceutical dispensing systems, sales from
acquisitions and higher tooling sales. A stronger U.S. dollar relative
to the Euro and nearly flat sales of fragrance/cosmetic pumps put
downward pressure on our year-over-year sales growth.
For the first time, our earnings reflected the adoption of the new
accounting standard relating to share-based compensation.
Consequently, our quarterly results were reduced by $.13 per share
because of non-cash expenses associated with stock options. Aside from
the accounting change, our strong earnings in the quarter were driven
by increased sales, improved productivity and cost containment
efforts.
BUSINESS SEGMENT PERFORMANCE
Beginning with the first quarter of 2006, AptarGroup is reporting
new business segments that reflect AptarGroup's realigned internal
financial reporting structure. Prior period information has been
conformed to the current presentation.
Operations that sell spray and lotion dispensing systems to the
personal care, fragrance/cosmetic and household markets now form the
Beauty & Home segment. Operations that sell dispensing systems to the
pharmaceutical market now form the Pharma segment. Finally, operations
that sell dispensing closures to each market served by AptarGroup now
form the Closures segment.
For the quarter, sales of the Beauty & Home segment increased 9%
to $195.3 million from $179.1 million in the prior year. Beauty & Home
segment income increased to $16.6 million from $14.9 million in the
prior year. The increases in Beauty & Home sales and income were
primarily due to acquisitions.
For the quarter, sales of the Pharma segment increased 6% to $74.6
million from $70.1 million in the prior year. Pharma segment income
increased to $17.1 million from $16.3 million a year ago. The growth
in the Pharma segment's results was primarily due to increased custom
tooling and product sales, partially offset by currency effects.
For the quarter, sales of the Closures segment increased 11% to
$105.5 million from $94.7 million in the prior year. Closures segment
income increased to $10.5 million from $8.3 million a year ago. The
Closures segment's results were driven primarily by increased product
sales, price increases related to passing through resin costs and
acquisitions.
OUTLOOK
Siebel stated, "We expect sales to continue to increase in the
second quarter although sales growth may again be negatively impacted
by the U.S. dollar/Euro exchange rate.
We anticipate second quarter sales of our Beauty & Home and
Closures segments to grow over the prior year, in spite of ongoing
price competition, due to increased volumes as well as the impact of
acquisitions. Pharma segment unit volumes are expected to increase
although revenue is expected to decline from last year due to lower
custom tooling sales and currency effects.
We anticipate that diluted earnings per share for the second
quarter of 2006 will be in the range of $.70 to $.75 per share,
including stock option expenses, compared to $.81 per share in the
prior year which included a $.09 per share positive impact from
reduced income taxes related to research and development credits in
the U.S. and tax law changes in Italy."
Second Quarter 2006 Estimated Diluted Earnings Per Share
Three Months Ended
June 30,
------------------------------
Estimated 2006 Reported 2005
-------------- --------------
Diluted Earnings Per Share Before Stock $.74 to $.79 $0.72
Option Costs ('06) and Certain Income
Tax Benefits ('05)
Impact of Certain Income Tax Benefits
('05) --- $0.09
Impact of Stock Option Costs ('06) (.04) ---
------------------------------
Diluted Earnings Per Share $.70 to $.75 $0.81
==============================
CASH DIVIDEND
The Board of Directors declared a quarterly dividend of $.20 per
share, payable May 19, 2006 to stockholders of record as of April 28,
2006.
OPEN CONFERENCE CALL
There will be a conference call on Friday, April 21, 2006 at 8:00
a.m. CDT to discuss AptarGroup's first quarter results. The call will
last approximately one hour. Interested parties are invited to listen
to a live webcast by visiting the Investor Relations page at
www.aptargroup.com. Replay of the conference call can also be accessed
on the Investor Relations page of the Web site.
AptarGroup, Inc. is a leading global supplier of a broad range of
innovative dispensing systems for the personal care,
fragrance/cosmetic, pharmaceutical, household and food/beverage
markets. AptarGroup is headquartered in Crystal Lake, Illinois, with
manufacturing facilities in North America, Europe, Asia and South
America. For more information, visit the AptarGroup web site at
www.aptargroup.com.
This press release contains forward-looking statements.
Forward-looking statements are made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and are based on
management's beliefs as well as assumptions made by and information
currently available to management. Accordingly, AptarGroup's actual
results may differ materially from those expressed or implied in such
forward-looking statements due to known or unknown risks and
uncertainties that exist including, but not limited to, those related
to overall business conditions in the various markets in which
AptarGroup operates, the competitive marketplace, fiscal and monetary
policy, changes in foreign exchange rates, direct or indirect
consequences of acts of war or terrorism, labor relations and other
risks and uncertainties discussed from time to time in AptarGroup's
filings with the Securities and Exchange Commission, including its
Form 10-K's and 10-Q's. Readers are cautioned not to place undue
reliance on forward-looking statements.
The following Condensed Consolidated Financial Statements are
unaudited.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
------------------------------
2006 (1) 2005
------------------------------
Net Sales $375,468 $343,999
Cost of Sales (exclusive of depreciation
shown below) 253,786 232,478
Selling, Research & Development and
Administrative 62,370 51,640
Depreciation and Other Amortization 26,913 25,532
-------------- --------------
Operating Income 32,399 34,349
Other Income/(Expense):
Interest Expense (3,810) (2,738)
Interest Income 911 815
Equity in Results of Affiliates 106 332
Minority Interests (46) -
Miscellaneous, net (513) (305)
-------------- --------------
Income before Income Taxes 29,047 32,453
Provision for Income Taxes 9,237 10,385
-------------- --------------
Net Income $19,810 $22,068
============== ==============
Net Income per Share - Basic $0.56 $0.62
============== ==============
Net Income per Share - Diluted $0.55 $0.60
============== ==============
Average Number of Shares - Basic 35,075 35,639
Average Number of Shares - Diluted 36,246 36,773
Note to Condensed Consolidated Financial Statements:
(1) - For the first quarter 2006, the following amounts related to
stock option expenses are included in the respective lines of the
above table: Cost of Sales ($.3 million), Selling, Research &
Development and Administrative ($6.8 million), Income Before Income
Taxes ($7.1 million), Net Income ($4.6 million), and Net Income
per Share - Diluted ($.13 per share).
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
March 31, 2006 December 31, 2005
ASSETS
Cash and Equivalents $120,210 $117,635
Receivables, net 289,319 260,175
Inventories 193,245 184,241
Other Current Assets 49,671 43,240
----------------- -----------------
Total Current Assets 652,445 605,291
Net Property, Plant and Equipment 555,131 536,820
Goodwill, net 196,419 184,763
Other Assets 29,069 30,445
----------------- -----------------
Total Assets $1,433,064 $1,357,319
================= =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Short-Term Obligations $124,151 $102,103
Accounts Payable and Accrued
Liabilities 231,988 218,659
----------------- -----------------
Total Current Liabilities 356,139 320,762
Long-Term Obligations 141,580 144,541
Deferred Liabilities 84,546 82,628
----------------- -----------------
Total Liabilities 582,265 547,931
Stockholders' Equity 850,799 809,388
----------------- -----------------
Total Liabilities and Stockholders'
Equity $1,433,064 $1,357,319
================= =================
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
Three Months Ended
March 31,
------------------------------
2006 2005
---- ----
SALES
Beauty & Home $197,922 $180,942
Closures 105,729 95,153
Pharma 74,957 70,714
Other 226 329
-------------- --------------
Total Sales $378,834 $347,138
============== ==============
INTERSEGMENT ELIMINATIONS
Beauty & Home $(2,614) $(1,835)
Closures (241) (408)
Pharma (343) (632)
Other (168) (264)
-------------- --------------
Total Intersegment Eliminations $(3,366) $(3,139)
============== ==============
NET SALES
Beauty & Home $195,308 $179,107
Closures 105,488 94,745
Pharma 74,614 70,082
Other 58 65
-------------- --------------
Total Net Sales $375,468 $343,999
============== ==============
SEGMENT INCOME (1)
Beauty & Home $16,633 $14,896
Closures 10,537 8,262
Pharma 17,063 16,264
Corporate Expenses and Other (2) (12,287) (5,046)
-------------- --------------
Income before Interest and Taxes 31,946 34,376
Less: Interest Expense, Net 2,899 1,923
-------------- --------------
Income before Income Taxes $29,047 $32,453
============== ==============
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and
allocates resources based upon income before interest expense in
excess of interest income, stock option and corporate expenses,
income taxes and unusual items.
(2) - For 2006, Corporate Expenses and Other includes the total
amount related to stock option expenses of $7.1 million.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424